Last week many students, faculty and staff from the 10 campuses in the University of California system walked out of class for a demonstration billed “Day of Action to Defend Education.” The march was in protest of the so-called “tax” 8212; as professors and members of the UC and California State University system have labeled it 8212; according to www.wsj.com. This was quite odd; during most large and unfair tax increases in our state, you generally don’t see an uproar from America’s most progressive public university system. But this tuition increase, which has been presented by the UC system as a $662 tax hike for college students according to www.wsj.com, has gotten their attention.
Apparently professors and students can’t understand the difference between a reduction in a state subsidy and an increase in taxes. Our state’s school system is one of the most heavily tax-payer funded systems in America. To put it another way, the tax-paying residents of California pay more for our public education than the residents of any other state.
When speaking about the university budget shortfalls, UC president Mark Yudof said, “You can protest. You can put up signs &- at Berkeley they like to occupy the trees and run nude &- but the answer is “I still don’t have the money,'” according to www.wsj.com.
This is a fair assessment by Yudof, who has tried to push the protest attention off himself and project it on the state legislature. But in reality, Sacramento doesn’t have the money either. Our state is facing a $20 billion budget shortfall. Unlike the federal government, which can keep printing more and more money as the value of the dollar continues to crumble, states must work with the budgets they have, or face cuts.
I do think there is something for UC and CSU students to learn from this; it might be what President Barack Obama calls a “teachable moment.” Obviously, with the fee increase, students have received a dose of economic reality, but I don’t think they understand how they got here. Yudof, our professors and students must look at California’s tax code to uncover the source as to why our state, in particular, has been ravaged by the economic downturn.
In California, the tax percentage has been increased on a smaller base. The top 1 percent of the wealthiest income earners in California pay almost half of the state’s taxes, according to www.bloomberg.com. Because California ranked as one of the three least business-friendly states in America in 2005 8212; along with New York and Massachusetts, so arguably the three most liberal states 8212; top-earners are either moving their businesses, or are forced to move themselves. These businesses and top income earners are moving to states like Texas, Nevada and Florida, conservative states that were the top three business-friendly states in 2005, according to www.allbusiness.com.
So, when those who pay 50 percent of California’s tax revenue are forced out by those very same unfair tax rates, onerous regulations and high welfare entitlements, there are unintended consequences. The money that pays for everything in the state, especially higher education, is lost.
In 2004, California had one of its most profitable years. The state had record surpluses. Instead of saving the money, the democratically controlled legislature was compelled to spend. The smart choice would have been to build more schools or fire stations. The unions however, forced the state to hire vast amounts of teachers, firefighters and other state employees. Now, when the tax revenue is not coming in anymore, the state is forced to pay these people’s salaries with tax money it doesn’t have. When things like higher education are underwritten by tax revenue, the state is forced to make cuts in these areas as well. Students find themselves having to pay higher tuition and faculty find themselves with a pay cut or out of a job.
The ironic fact is that if the protesters want to keep the progressive California tax system the way it is, they will be forced to rely solely on the wealthy class they love to scapegoat and demonize. If the tax rate was lessened on the top-earning 1 percent and broadly spread out amongst the tax brackets, we would be far less susceptible to the volatile boom / bust cycles we have faced, while still attracting the wealthy, who pay the most money toward state revenue.
My advice to my peers who protested last week is to put your clothes on, put your signs down, pick up the California tax code and educate yourselves about why California is sliding into a welfare state and continues to be the prime example of the nightmare where America is heading.
8212;Patrick Walsh is a political science junior.
8212;This column does not necessarily reflect the opinion of The Daily Aztec. Send e-mail to opinion@thedailyaztec.com. Anonymous letters will not be printed. Include your full name, major and year in school.